Rising car costs in 2023 - time to review your car loan?

By Paige Sutton · · 2 min read
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Family packing car for holiday

The rising costs of living have been biting Aussies this year, with transportation, along with housing costs and groceries being 2023's biggest expenses. 

Recent research from the Australian Automobile Association (AAA) shows that transport costs continue to increase for Aussies, with over 15% of household income being spent on this area. 

The cost per household has risen a whopping $1,730 a year in the last 12 months. 

Transport costs can include all operating costs to get your hot wheels on the road, along with public transport - but what about the basic bread and butter costs car owners face?

Fuel pricing is in focus 

Fuel is a necessity to vehicle owners making up 23% of transport costs, but those prices have been eye watering. However, there has been some relief! 

The AAA shows that fuel prices have been declining since the end of 2022 by almost $3 a week for Aussie households. The cities doing it toughest with the highest fuel prices are Hobart and Brisbane, with Perth coming in at the lowest prices. 

It should be noted that tyre costs are taking grip too.

The weekly costs of serving and tyres have risen $3 a week in the last 12 months for households, with the highest prices being in the cities of Canberra and Perth, says the AAA. 

The real rub? Car loan repayments 

Car loan repayments are in a league of their own and have been subject to their own interest rate battles.

It’s no surprise that car loan repayments have increased by $35 a week per household in the last 12 months. The current average weekly car loan repayment is $183.30 and makes up 44.4% of a household transportation costs. 

These types of costs needn’t dictate your buying experience. There are ways to tackle the problem. 

Finding the right car loan for you can be stressful, but having the right resources makes it easier. Making sure you know all the facts can help you reach your financial goals faster. Compare some car loan options below to help find the right one for you!

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Last updated 23 November 2024 Important disclosures and comparison rate warning*
  • Used Car Loan

    Fixed, Secured, No vehicle age limit, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured used car loan of up to $100,000 depending on your credit score. No vehicle age limits. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

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  • Better Car Loan Special Offer

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    6.48% p.a.
    6.89% p.a.based on $30,000
    over 5 years

    Get a fixed rate car loan for amounts over $20,000 with Police Credit Union. Make additional repayments at any time without penalty. Free online redraw. Available for new and used cars. Can also be used for motorcycles, boats, caravans, trailers or any registrable vehicle.

    Repayment terms from 1 year to 5 years. Representative example: a 5 year $30,000 loan at 6.48% would cost $35,497.21 including fees.

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    Details
  • Used Car - Unsecured Personal Loan

    Interest rate
    comparison rate
    Monthly repayment
    6.56% p.a.to 21.99% p.a.
    6.56% p.a.to 22.79% p.a.based on $30,000
    over 5 years

    Competitive fixed rates for borrowers on 1-7 year loans from $5,000 up to $50,000. $0 monthly fees and no early repayment fees to pay. Fast application process on the Revolut app. According to Revolut and subject to loan approval, you'll receive your money into your Revolut account straight away. Eligibility criteria applies.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.56% would cost $35,768.68 including fees.

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    Details
  • New Car Loan

    Fixed, Secured

    Interest rate
    comparison rate
    Monthly repayment
    7.29% p.a.to 16.99% p.a.
    8.00% p.a.to 17.77% p.a.based on $30,000
    over 5 years

    Competitive interest rates for vehicles up to 3 years old (new and demo). Maximum loan term of 7 years. No ongoing fees. Dealer/private sale acceptable. Pre-purchase approvals available.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 7.29% would cost $36,387.95 including fees.

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    Details
  • New Car Loan

    Fixed, Secured, $5,000-$100,000

    Interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 18.99% p.a.
    7.19% p.a.to 21.78% p.a.based on $30,000
    over 5 years

    Get a competitive fixed interest rate on a secured new car loan of up to $100,000 depending on your credit score. Easy online application. Fast pre-approval. Pre-approved funds held for up to 3 months. No monthly account keeping fees, no exit fees and no early repayment fees. Flexible weekly, fortnightly or monthly repayments on terms from 1 to 7 years.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Go to site
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

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